EQUINOR ASA-SPON ADR (EQNR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EQNR - US29446M1027 - ADR
25.405 USD
+0.73 (+2.94%)
Overall EQNR gets a fundamental rating of 5 out of 10. We evaluated EQNR against 207 industry peers in the Oil, Gas & Consumable Fuels industry. EQNR scores excellent on profitability, but there are some minor concerns on its financial health. EQNR is valued quite cheap, but it does not seem to be growing. These ratings could make EQNR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- EQNR had positive earnings in the past year.
- EQNR had a positive operating cash flow in the past year.
- Of the past 5 years EQNR 4 years were profitable.
- Each year in the past 5 years EQNR had a positive operating cash flow.
1.2 Ratios
- EQNR has a Return On Assets (4.22%) which is in line with its industry peers.
- EQNR has a Return On Equity of 14.13%. This is in the better half of the industry: EQNR outperforms 76.81% of its industry peers.
- EQNR has a Return On Invested Capital of 23.19%. This is amongst the best in the industry. EQNR outperforms 97.10% of its industry peers.
- EQNR had an Average Return On Invested Capital over the past 3 years of 33.97%. This is significantly above the industry average of 21.94%.
- The 3 year average ROIC (33.97%) for EQNR is well above the current ROIC(23.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.22% | ||
| ROE | 14.13% | ||
| ROIC | 23.19% |
ROA(3y)11.06%
ROA(5y)6.92%
ROE(3y)32.85%
ROE(5y)20.85%
ROIC(3y)33.97%
ROIC(5y)25.77%
1.3 Margins
- Looking at the Profit Margin, with a value of 5.35%, EQNR is in line with its industry, outperforming 46.86% of the companies in the same industry.
- In the last couple of years the Profit Margin of EQNR has grown nicely.
- The Operating Margin of EQNR (27.99%) is better than 70.05% of its industry peers.
- EQNR's Operating Margin has improved in the last couple of years.
- EQNR has a Gross Margin of 48.66%. This is comparable to the rest of the industry: EQNR outperforms 58.45% of its industry peers.
- In the last couple of years the Gross Margin of EQNR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.99% | ||
| PM (TTM) | 5.35% | ||
| GM | 48.66% |
OM growth 3Y-8.38%
OM growth 5Y5.28%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EQNR is creating value.
- The number of shares outstanding for EQNR has been reduced compared to 1 year ago.
- The number of shares outstanding for EQNR has been reduced compared to 5 years ago.
- EQNR has a worse debt/assets ratio than last year.
2.2 Solvency
- EQNR has an Altman-Z score of 2.47. This is not the best score and indicates that EQNR is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.47, EQNR is doing good in the industry, outperforming 74.40% of the companies in the same industry.
- The Debt to FCF ratio of EQNR is 4.56, which is a neutral value as it means it would take EQNR, 4.56 years of fcf income to pay off all of its debts.
- EQNR's Debt to FCF ratio of 4.56 is fine compared to the rest of the industry. EQNR outperforms 66.18% of its industry peers.
- EQNR has a Debt/Equity ratio of 0.62. This is a neutral value indicating EQNR is somewhat dependend on debt financing.
- EQNR has a Debt to Equity ratio of 0.62. This is comparable to the rest of the industry: EQNR outperforms 42.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 4.56 | ||
| Altman-Z | 2.47 |
ROIC/WACC3.43
WACC6.75%
2.3 Liquidity
- A Current Ratio of 1.23 indicates that EQNR should not have too much problems paying its short term obligations.
- EQNR has a Current ratio (1.23) which is in line with its industry peers.
- A Quick Ratio of 1.12 indicates that EQNR should not have too much problems paying its short term obligations.
- EQNR has a Quick ratio (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- EQNR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.57%.
- EQNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.82% yearly.
- The Revenue has been growing slightly by 2.15% in the past year.
- Measured over the past years, EQNR shows a quite strong growth in Revenue. The Revenue has been growing by 10.24% on average per year.
EPS 1Y (TTM)-28.57%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-53.16%
Revenue 1Y (TTM)2.15%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%2.14%
3.2 Future
- Based on estimates for the next years, EQNR will show a decrease in Earnings Per Share. The EPS will decrease by -0.02% on average per year.
- EQNR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.76% yearly.
EPS Next Y-16.15%
EPS Next 2Y-6.05%
EPS Next 3Y-1.5%
EPS Next 5Y-0.02%
Revenue Next Year0.77%
Revenue Next 2Y-4.32%
Revenue Next 3Y-2.5%
Revenue Next 5Y-4.76%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- EQNR is valuated reasonably with a Price/Earnings ratio of 10.95.
- Based on the Price/Earnings ratio, EQNR is valued cheaply inside the industry as 80.68% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.30. EQNR is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 8.85, which indicates a very decent valuation of EQNR.
- Based on the Price/Forward Earnings ratio, EQNR is valued cheaper than 87.44% of the companies in the same industry.
- EQNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 8.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EQNR is valued cheaper than 99.03% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQNR indicates a rather cheap valuation: EQNR is cheaper than 82.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.39 | ||
| EV/EBITDA | 1.34 |
4.3 Compensation for Growth
- The decent profitability rating of EQNR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y-6.05%
EPS Next 3Y-1.5%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.05%, EQNR is a good candidate for dividend investing.
- EQNR's Dividend Yield is a higher than the industry average which is at 3.75.
- Compared to an average S&P500 Dividend Yield of 1.82, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.05% |
5.2 History
- On average, the dividend of EQNR grows each year by 24.62%, which is quite nice.
- EQNR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 101.05% of the earnings are spent on dividend by EQNR. This is not a sustainable payout ratio.
- The Dividend Rate of EQNR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP101.05%
EPS Next 2Y-6.05%
EPS Next 3Y-1.5%
EQUINOR ASA-SPON ADR / EQNR FAQ
What is the ChartMill fundamental rating of EQUINOR ASA-SPON ADR (EQNR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to EQNR.
What is the valuation status of EQUINOR ASA-SPON ADR (EQNR) stock?
ChartMill assigns a valuation rating of 7 / 10 to EQUINOR ASA-SPON ADR (EQNR). This can be considered as Undervalued.
How profitable is EQUINOR ASA-SPON ADR (EQNR) stock?
EQUINOR ASA-SPON ADR (EQNR) has a profitability rating of 7 / 10.
What is the financial health of EQUINOR ASA-SPON ADR (EQNR) stock?
The financial health rating of EQUINOR ASA-SPON ADR (EQNR) is 5 / 10.
What is the expected EPS growth for EQUINOR ASA-SPON ADR (EQNR) stock?
The Earnings per Share (EPS) of EQUINOR ASA-SPON ADR (EQNR) is expected to decline by -16.15% in the next year.